Joint mortgages, pre-emption rights by co-lenders and conflict of laws: a case study

Abstract

In this paper, I analyze whether pre-emption rights by co- owners are applicable to joint mortgage-secured loans. Scholarship that has addressed the matter to date has based the non-existence of such pre-emption rights on the German nature of the community of creditors and, therefore, on the lack of shares therein. In the following pages, I will humbly try to challenge this thesis, outlining the merits that, in my view, determine that pre-emption rights by co-owners do not apply to joint loans. In addition, I address the implications of the mortgaged assets being located in territories with regional civil law systems, the conflict of laws that arises therefrom and how I understand that this should be solved, depending on the nature of the different rights at play.